YSR Congress Party has described the general budget as disappointing and a pointer for increase of prices and slashing of subsidies in the days to come.
“Though the Union Government has boasted of 9 per cent economic growth, it could hardly achieve 6.7 per cent and it had given enough indication that fiscal stimulus packages will be withdrawn in a phased manner,” the party political advisory committee member, DA Somayajulu said on Friday.
Increasing the service tax net and suggesting an increase of fiscal and revenue deficit forces slow or no economic growth. We can achieve it only when the revenue deficit is brought down to zero, he said.
All estimates were going topsy-turvy as the estimated 18 per cent budget revenue stood at 7 per cent for the ten months period during 2011-12.
There is a policy paralysis as there is a stagnation in production of coal for the past three years so is the production of crude oil and we are forced to import.
Subsidies will be reduced, is what the Centre is telling and which sector will be affected remains to be seen, he said.
During the 10th FY Plant the growth rate was 7.4 and in the 11th plan it was pegged at 7.6 per cent. The agriculture growth rate is just 2.5 per cent while a 4 per cent growth rate was assured. The situation in manufacturing sector, which is a part of industrial sector and has a large workforce, is pathetic, he said.
There is no investment on capital expenditure and in the coming days economic growth touching the desired per cent could be a mirage, he said.
Meanwhile, party official spokesperson JupudiPrabhakar Rao said that the budget was not very encouraging. Workers, employees, businessmen and other categories were unhappy as they there was nothing on offer for their benefit.
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